SushiSwap: Impact of white-hat exploit and SUSHI’s swift recovery
- SushiSwap was successfully able to recover a portion of the stolen funds.
- In the wake of the exploit, SUSHI’s price was not affected much, and its on-chain performance remained decent.
SushiSwap [SUSHI] recently fell victim to a white hat exploit, which resulted in a loss of millions of dollars worth of Ethereum [ETH]. For context, SushiSwap faced a router processor bug on 9 April 2023, causing a loss of nearly 1800 ETH, which was worth more than $3 million.
To clear the air, the SushiSwap Router Processor is a smart contract powered by the Ethereum blockchain.
🚨 Some positive news following the RouteProcessor 2 approval bug.
Sushi's secured a large portion of affected funds in a whitehat security process.
🔍 If you performed a recovery please contact firstname.lastname@example.org for next steps.
— Sushi.com (@SushiSwap) April 9, 2023
Read SushiSwap’s [SUSHI] Price Prediction 2023-24
The situation has been taken care of
The good news is that SushiSwap was able to secure a large portion of the affected funds in a white-hat security process. Head Chef of SushiSwap, Jared Grey, confirmed via a recent tweet the recovery of more than 300 ETH from CoffeeBabe of Sifu’s stolen funds.
We've confirmed recovery of more than 300ETH from CoffeeBabe of Sifu's stolen funds. We're in contact with Lido's team regarding 700 more ETH.
— Jared Grey (@jaredgrey) April 9, 2023
Furthermore, Dune’s data also revealed that the majority of the wallets across multiple chains were revoked already, which was a positive development for the community.
Network health is in check!
Interestingly, even though the incident was a catastrophe, it did not have a major impact on SUSHI’s reputation. This was evident from a look at Santiment’s chart, which showed a massive increase in SUSHI’s weighted sentiments toward the positive side.
Besides, as per Arbitrum Hub, SushiSwap was on the list of the top projects on Arbitrum with the highest number of active accounts in the last seven days, further establishing SushiSwap’s popularity.
Top projects on #Arbitrum with highest active accounts last 7 days🚀
🥇 $STG @StargateFinance
🥈 $UNI @Uniswap
🥉 @Orbiter_Finance$GALXE @Galxe$SUSHI @SushiSwap$YIELD @yield@MetaMask@SlingshotCrypto$GRAIL @CamelotDEX$GMX @GMX_IO#Layer2 $ARB #L2 @arbitrum pic.twitter.com/Uuy51JVism
— Arbitrum Hub (💙,🧡) (@ArbitrumHubETH) April 9, 2023
SUSHI faced the heat for a while
Undeniably, the exploit episode had a slight impact on SUSHI’s price, which declined marginally after the news broke out. However, the decline did not last long, and SUSHI’s price recovered quickly. Some even claimed to have bought the short-lived dip as they expected SUSHI’s price to bounce back to the pre-hack level.
CoinMarketCap’s data revealed that both SUSHI’s daily and weekly charts were painted green. At press time, the token was trading at $1.11 with a market capitalization of more than $246 million.
How much are 1,10,100 SUSHIs worth today?
The on-chain performance also looked decent
Things on the metrics front seemed up to the investors’ expectations. Consider this- SUSHI’s Binance funding rate was consistently high, suggesting a constant demand in the derivatives market. Whales’ confidence in SUSHI increased, as evident from the rise in the supply held by top addresses.
Moreover, SUSHI’s network growth and velocity were both relatively up, which by and large was a positive signal for the token.
Nonetheless, CryptoQuant’s data showed that SUSHI’s exchange reserve was increasing. This can lead to an increase in selling pressure, which can cause trouble in the coming days.